|Bid||0.0000 x 1100|
|Ask||0.0000 x 900|
|Day's Range||0.3001 - 0.3549|
|52 Week Range||0.0900 - 5.5700|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul. 29, 2020 - Aug. 06, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||9.90|
(Bloomberg Opinion) -- Peloton’s pricey stationary bikes and virtual spin classes have been a lifesaver for well-to-do Americans barred from their usual gym routines because of Covid-19. But the brand’s staggering growth also points to a disconcerting trend: The pandemic is exacerbating the gap between the country’s haves and have-nots. Shares of Peloton Interactive Inc. have more than tripled in price this year as more people look to work out at home. On Thursday, the company said its revenue in the latest quarter surged 172% and forecast at least $3.5 billion in sales for fiscal 2021, far outpacing analysts’ expectations. Peloton’s subscriber base now exceeds 1 million and should top 2 million this year. Its market value eclipsed $25 billion this month — which, to put that into perspective, makes it more valuable than Delta Air Lines Inc. and the parent of Hilton hotels. Peloton’s popularity is surging at the same time that a slew of gyms catering to middle-class Americans are closing their doors, after government-ordered shutdowns left them unable to generate membership dues and pay their debt obligations. Gold’s Gym International Inc. and 24 Hour Fitness Worldwide Inc. have sought bankruptcy protection; Town Sports International Holdings Inc., the owner of the New York Sports Club and Lucille Roberts chains, is said to be planning to file imminently. Even where gyms have reopened, smaller studios may be unable to make ends meet amid new safety protocols, including operating at lower capacity and enhancing air-conditioning systems. (Read my interview with a Queens, New York, fitness studio owner who had to permanently close her business.) The widening economic disparity can be seen everywhere, not just the fitness space. Take a look at housing: Sales of newly built U.S. homes climbed in July to the highest level in almost 14 years, and sales of previously owned houses jumped the most on record. Families that can afford to take advantage of all-time low mortgage rates are upgrading to more-spacious, work-from-home-friendly dwellings with backyards. Meanwhile, almost 16% of Federal Housing Administration-insured mortgages — a program to help lower-income families afford home ownership — were delinquent as of the second quarter, the highest level in records dating back to 1979. Turning to the garage: Automobile sales overall are down quite a bit this year, but prices for new vehicles are soaring as wealthier shoppers splurge on SUVs. Automakers’ focus on these bigger, more lucrative vehicles makes it hard for less well-off customers to buy. In a year when most brick-and-mortar retailers are hurting, RH (formerly known as Restoration Hardware) this week cited the “booming” market for second homes as boosting sales of its high-end home furnishings. RH’s stock price surged 20% on Thursday — the same day that off-price department store Century 21 filed for bankruptcy and said it will shut down. Likewise, discounter Stein Mart Inc. has filed Chapter 11, as have major mall tenants such as J.C. Penney Co., Men’s Wearhouse parent Tailored Brands Inc., Loft parent Ascena Retail Group Inc. and many more.(1) As those companies succumb to their debt loads, deep-pocketed corporate giants such as AT&T Inc. are tapping the bond market at an astonishing pace.Speaking of wireless companies, Apple Inc. will soon release its 5G-enabled iPhone, and it's going to cost a pretty penny. While the exact price point isn’t yet known, for reference, the iPhone 11 that came out a year ago retails for $699, with the Pro version starting at $999. Meanwhile, millions of Americans still don’t have reliable internet service at home, even as some schools switch to remote learning due to the virus. After the Federal Communications Commission’s Keep Americans Connected Pledge expired in July, customers facing financial hardship may have also lost service.This is the K-shaped economic “recovery” my Opinion colleague Barry Ritholtz wrote about recently — two lines moving in opposite directions, representing the country’s worsening wealth inequality. The impasse in Congress over the next round of stimulus money is ensuring that “K” is branded onto the face of the U.S.(1) J.C. Penney won a respite this week after mall operators Simon Property Group and Brookfield Property Partnersagreed to buy it out of bankruptcy.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
On Monday, Lord and Taylor announced that it would be filing for bankruptcy. This comes as Tailored Brands, the owner of Men’s Warehouse, also files for Chapter 11. Yahoo Finance’s Emily McCormick joins The Final Round panel to discuss the latest in retail.
(Bloomberg Opinion) -- Yet another storied clothing retailer has found itself no match for the financial pain brought on by the pandemic. Lord & Taylor, the department store chain that was once a star among the glittering emporiums of Fifth Avenue, has filed for Chapter 11 bankruptcy. Lord & Taylor filed along with Le Tote, the startup clothing rental company that had acquired the department store for $100 million last year in one of the weirder plot twists of the industry’s move toward e-commerce. The company says in its filing that its store footprint is “unsustainable” and that it has hired consulting firms to assist with store closures even as it continues to seek bidders. Given its long and rich history, I understand the desire to find a lifeline for Lord & Taylor. But, by now, a salvage effort is all but pointless and seems likely to be a mere precursor to liquidation. I’d suggest would-be bidders stay away, as it is useless now to try to restore retail’s past instead of acknowledging that the pandemic has reconfigured the industry in such a way that some chains are just beyond saving. Lord & Taylor has fewer than 40 locations, a tiny fleet you might mistake for an advantage in the online shopping era. After all, Macy’s Inc. and J.C. Penney Co. are closing stores right now in order to survive. But Lord & Taylor’s store portfolio is actually too small – and, crucially, too regionally concentrated — for the current moment. Most obviously, it means it doesn’t have many hubs for curbside pickup or to ship online orders from stores, formats which have suddenly gained primacy amid the Covid-19 outbreak. Also, it turns out that brick-and-mortar stores serve as powerful marketing tools and convenient return centers for online shopping. In fact, Macy’s has said when it closes stores in a given market, digital sales often sink, too. So if a network of strategically located stores plays a role in supporting a robust e-commerce business, Lord & Taylor is in a decidedly disadvantaged position. In 2019, when Helena Foulkes was still CEO of Hudson’s Bay Co. and Lord & Taylor was still owned by that department store giant, Foulkes offered some clues about why the company sought to unload that particular chain. In an interview with Recode, she noted that Lord & Taylor was “handicapped by its positioning in the marketplace” because it wasn’t a discounter like Ross Stores Inc. or TJX Cos.’ T.J. Maxx, nor was it an upscale player like Hudson’s Bay-owned Saks Fifth Avenue. That Lord & Taylor is not a luxury store may come as news to those who were only familiar with its now-closed Italian Renaissance-style Manhattan flagship or those who haven’t set foot in its mall stores in a couple of decades. But these days, Lord & Taylor is basically a competitor to Macy’s. Case in point: On its website as of Monday morning, more than 70% of its dress selection was priced between $50 and $150, decidedly more affordable than aspirational. It had also struck a partnership with Walmart Inc. back in 2018 – not exactly a paragon of luxury. Macy’s, at least, has its Backstage off-price concept, and Nordstrom has its Rack stores to go after more price-conscious consumers. Lord & Taylor is simply stuck in the middle and doesn’t have an obvious path toward becoming either glitzier or a discounter. That stuck-in-the-middle dynamic was among the many problems that dragged another retail empire, Tailored Brands Inc., into bankruptcy this week. I take no pleasure in saying that there is no place for Lord & Taylor in today’s retail world. It has an extraordinary history, from its founding as a dry goods emporium in the 1820s to its metamorphosis into one of the world’s oldest department stores. It was a pioneer of the idea of personal shopping. It flourished under the leadership of Dorothy Shaver, whose appointment as the company’s president in 1945 made her a rare woman executive in an industry that still could stand to have more gender diversity in its top ranks.Lord & Taylor has sentimental value for me, too. It was a frequent stop on my childhood trips to the mall, because my mom had learned a love of it from her mother, who frequented a suburban New York location when it was in its full 1950s and 1960s glamour. My grandfather bought my grandmother gifts there, usually with one of his daughters in tow to help make the selection. But trying to save Lord & Taylor, at this point, is a fool’s errand. It was ill-equipped to survive before the pandemic changed everything, and now it is essentially doomed. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.